European renewable energy firm Statkraft is set to commence the construction of the 278MW Devoll hydropower project in Albania.

The Devoll hydropower project consists of three hydropower plants that are located on the Devoll river, about 70 km southeast of the capital Tirana.

Initially, Statkraft will construct two hydropower plants with a combined capacity of 243MW, accounted to be around €535m. They are anticipated to generate 700GWh of energy annually.

Construction of the Banjë and Moglicë plants will begin in October 2013 and are expected to be completed in 2016 and 2018, respectively.

The Devoll hydropower project is expected to generate around 800GWh of clean electricity annually, increasing the Albanian electricity production by almost 20%.

Devoll Hydropower, the project company, was a 50/50 joint venture between Statkraft and the Austrian energy firm EVN.

Earlier in 2013, Statkraft has acquired 50% stake in EVN, which makes it the 100% owner of the company and the construction project.